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IDS World Markets Mon 4th June 07


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w?s=%5EAORD

 

 

I set off on the treadly for the holiday pump class at the gym and it rained all the way there and back, just great, and the maximum today was 11C which is not quite as low as the June record of 9.6C set in 1946 but close enough. Needless to say some other activities I had planned with friends were severely curtailed but there were alternatives :)

 

I missed most the market action but it seems that All Ords did one of its boner blasts, +0.9%, which takes us to yet another record closing high. Healthcare headed the pack, +1.4% and Consumer Discretionary was up the least, +0.1%.

 

A spotty day for the miners. While BHP, +2.1%, did well, RIO barely gained traction, +0.1% and it was a similar story in the golds with Lihir closing flat but Newcrest up an impressive 5.2% and Newmont +1.8%.

 

Oils did ok: Woodside +0.6% and Santos +1.5%.

 

Over in Asia, China did a massive move, -8.3% but other bourses remained relatively unaffected with Sth Korea +1.2%, Singers +0.8% and Nikkers +0.1%.

 

Over to UK/Europe:

 

t?s=%5EFTSE

 

t?s=^GDAXI

 

t?s=^FCHI

 

http://finance.yahoo.com/intlindices?e=europe

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bulls have been trained to buy every dip

 

one of these days they'll find themselves holding a loss at the close

 

and they won't take it MOC :)

 

that's when shorty will have 'em right where he wants 'em

 

day after day

 

all the way back down :ph34r:

 

round tripper B)

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China's Stocks Post Record Drop

 

June 4 (Bloomberg) -- China's key stock index plunged by a record number of points after the government's main securities daily signaled officials won't try to halt a slump that's erased more than $350 billion of market value in four days.

 

Concern that the government will further lift taxes on share trading was heightened on June 1, after figures showed the increase in stamp duty failed to deter investors from opening accounts.

 

More than 420,000 brokerage accounts were set up on May 30, exceeding this quarter's average of about 300,000, official figures show. The number of accounts last week topped 100 million for the first time.

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During the California Gold Rush, it was the suppliers of the miners -- purveyors of pickaxes and shovels -- and not the hopeful prospectors, who really struck it rich.

Except returns for oil- and metals-linked funds are sorely lagging ETFs invested in shares of companies that produce and sell those products. Once again, it's the makers of tools and equipment to unearth and refine oil, gold and industrial metals that are posting the strongest gains.

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A friend of mine told me that he is making $1,500 a day outside his job, and they he's pissed off that the UC system won't let him retire until age 50. Poor baby. He works at Lawrence Livermore labs.

 

I asked him what he's doing to make that much money every day, and pointed out that he is looking at $547,000 annualized (untyped message, dewd, please quit your job and become a private citizen again).

 

His secret is that he's playing the Chinese stock market. He said he will get out "before it crashes".  :lol:

 

From what it sounds like, he has his entire trading account in the Chinese issues right now.

584421[/snapback]

 

I didn't even know that foreigners had access to the A-shares!?

 

"The government limits foreign investment in local-currency securities to $10 billion, a quota that China said last month it plans to triple. Local banks are allowed to invest a combined total of $14.9 billion overseas, half of which can be used to buy stocks listed on approved exchanges."

 

http://www.bloomberg.com/apps/news?pid=206...OqIM&refer=home

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During the California Gold Rush, it was the suppliers of the miners -- purveyors of pickaxes and shovels -- and not the hopeful prospectors, who really struck it rich.

Except returns for oil- and metals-linked funds are sorely lagging ETFs invested in shares of companies that produce and sell those products. Once again, it's the makers of tools and equipment to unearth and refine oil, gold and industrial metals that are posting the strongest gains.

584441[/snapback]

 

Last time I looked this wasn't true for the European oil service companies.

 

If peak oil is true, new explorations will peak as well.

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Already mentioned here but with more gritty details now:

 

" Final Straw

 

The final straw came later in March, when Dillon Read joined the list of investors burned by bets on the U.S. mortgage market. The UBS account hemorrhaged as defaults surged on so- called subprime home loans to people with poor credit histories or high debt burdens, forcing Dillon Read to mark down the value of its mortgage bonds. The losses more than obliterated the account's trading profits for January and February.

 

Costas said he immediately phoned John Fraser, chairman and CEO of UBS Global Asset Management, to report what happened, hopeful that UBS would tolerate a single month of losses after so many years of successful trading. Instead, Costas said UBS gave him two options: return the bank's capital and stay in business managing the fund for outside investors; or let UBS take over its account at Dillon Read and cash out clients with their gains intact. He chose the latter.

 

``If this other plan doesn't work I have to liquidate that portfolio,'' Costas said. ``Funds don't take well to liquidation.'' "

 

http://www.bloomberg.com/apps/news?pid=206...TJo0&refer=home

 

The pain from liquidation of the Subprime bagholders will eventually kick in.

 

This guy was "forced" to mark down the value of the subprime holdings because he works for UBS, I wonder how many unregulated hedge funs don't mark down the value of low (non-existent?) liquidity ASSets suchs as CDO tranches. How many holes does the ponzi-scheme have? It has happened before in Japan, why not in the US? If a company like ENRON can hide losses under the SEC's and the market's nose why not unregulated offshore hedge funs?

 

It's all good until clients start drawing funds.

 

" Fundraising Constraints

 

``Where we should have gone quicker was getting out that second and third fund into the marketplace,'' Costas said. ``One of the things that we weren't successful at, given the constraints we were dealing with, was trying to roll out product quick enough.'' "

 

Sounds like a Ponzi scheme - you just have to keep the money flowing in...

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Good Morning!

 

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During the California Gold Rush, it was the suppliers of the miners -- purveyors of pickaxes and shovels -- and not the hopeful prospectors, who really struck it rich.

Except returns for oil- and metals-linked funds are sorely lagging ETFs invested in shares of companies that produce and sell those products. Once again, it's the makers of tools and equipment to unearth and refine oil, gold and industrial metals that are posting the strongest gains.

584441[/snapback]

 

Last time I looked this wasn't true for the European oil service companies.

 

If peak oil is true, new explorations will peak as well.

584443[/snapback]

 

 

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